Losses on diesel more than double to Rs 3.40 a litre

With escalating violence in Iraq spooking international oil markets, losses on the sale of diesel have more than doubled to Rs 3.40 a litre even after monthly price increases.

The difference between the cost of diesel production and the retail selling price has widened to Rs 3.40 a litre now after narrowing to Rs 1.62 a litre last month, according to an official statement.

The losses doubled even after the Narendra Modi government continued with the previous United Progressive Alliance regime's decision to eliminate subsidy through small doses of monthly price increases.